Gov. Jerry Brown has just signed a compromise that puts off making online retailers like Amazon.com collect sales taxes in California for one year, giving the industry time to lobby Congress for protection.
My colleague Steve Harmon was at the signing event in San Francisco and will be filing a full report shortly, but meanwhile, we’ve got stakeholders comments pouring in.
Assemblywoman Nancy Skinner, D-Berkeley, was among architects both of the “Amazon tax” bill passed in June and of this compromise delay, which convinced Amazon to drop its plans to spend millions on a repeal ballot initiative next year.
“The issue of eFairness is all about protecting jobs and businesses in California,” Skinner said in a news release. “AB 155 ensures a level playing field for California stores so they can keep their employees and support our communities, and it means new revenue that can be used for our schools, seniors and safety.”
“AB 155 is an historic compromise that sees online companies and brick-and-mortar retailers coming together. Businesses already face a lot of troubling uncertainties these days. AB 155 and Amazon dropping its challenge to eFairness in California takes some of that uncertainty away.”
State Sen. Loni Hancock, D-Berkeley, also pushed hard for the tax.
“This is a classic compromise that will greatly benefit the state,” Hancock said in her news release. “For the first time, Amazon acknowledges that it is obligated to collect and remit California sales tax and that it will begin doing so, without further challenge, in September 2012. Amazon has also agreed to forgo any further attempt at a referendum and will not pursue court challenges. We now have a clear path to creating a level playing field where the state’s brick-and-mortar businesses will not be at an unfair disadvantage.”
Assembly Speaker John Perez, D-Los Angeles, said California today “has moved forward towards achieving fairness. AB 155 closes a loophole that gives out-of-state online retailers an unfair advantage over stores in California, giving retailers time to achieve a federal solution. Overall, more jobs will ultimately be protected and created within the state.”
Paul Misener, Amazon’s vice president of global public policy, issued a statement saying the company is grateful to Brown and the Legislature’s bipartisan leadership “for this win-win law.
“We’re excited that we now can create 10,000 jobs and cause $500 million in investment in California in addition to reinstating our California-based affiliates,” he said. “We’re committed to working with Congress, retailers and the states to pass federal legislation as soon as possible and as analysts have noted, we’ll continue to offer customers the best prices, regardless of whether sales tax is charged.”